An Inflationary Gap Most Likely Comes from

question 154

Multiple Choice

An inflationary gap most likely comes from

• A) a negative demand shock.
• B) a negative supply shock.
• C) a positive demand shock.
• D) a positive supply shock.
• E) OPEC.

---

Definitions:

Lazarus

Refers to the psychologist Richard Lazarus, known for his theory on emotion and stress which emphasizes the importance of cognitive appraisal.

Social Health

An individual's capacity to form satisfying interpersonal relationships with others and to adapt comfortably to different social situations.

Fight-or-Flight

A physiological response to perceived danger or threat, preparing the body to fight or flee from the threatening situation.

Tend-and-Befriend

A theory suggesting that in response to stress, individuals, especially women, are predisposed to caring for offspring and seeking social support.